In 2015, Delta invested $450 million to acquire a 3.55% stake in Shanghai-based China Eastern. While investing in a subsidized airline is something that you’d think Delta would be opposed to, the intent was clearly that China Eastern would give them better access to Shanghai, which is a major market already, and will grow over time.
Well, it looks like Delta isn’t the only U.S. carrier that wants a piece of a Chinese carrier. Bloomberg is reporting that American is in advanced talks to buy a roughly $200 million stake in Guangzhou-based China Southern. Per the story:
“The negotiations focus on an investment of about $200 million by Fort Worth, Texas-based American in China Southern’s Hong Kong-listed shares, said the people, asking not to be identified as talks are confidential. The sale likely would take place through a private placement, one of the people said. China Southern has a market value of about $10 billion.”